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Glossary of terms

PeterOBN

Member
affiliate
I noticed we still don't have a thread like that, so here goes...
K, please make that a Sticky to help the new arrivals, thanks!

Affiliate Marketing: A revenue sharing arrangement between online merchants and distributors (affiliates) in which the affiliate earns a commission for producing a sale, lead or click for the merchant’s site.

Affiliate Network: A third party providing services to affiliate merchants and affiliates, including tracking technology, reporting tools, and payment processing.

Affiliate: A web site owner that promotes a merchant’s products and/or services, earns a commission for referring clicks, leads, or sales.

Advertiser (Merchant) - Business owner who works with affiliates to generate business.

Above the fold - The visible portion of a page when it is first loaded.

Affiliate Agreement: Terms that govern the relationship between a merchant and an affiliate.

CPA - Cost per action - Advertising model that allows advertisers/merchants to pay affiliates per action, e.g. purchase, opt in, form submission.

CPC - Cost per click

CPM - Cost per thousand impressions

PPD - Pay Per Download

Commission: Also known as a bounty or referral fee, the income an affiliate is paid for generating a sale, lead or click-through to a merchant’s web site.

Conversion: When one of your visitors makes a purchase on the merchant’s site… i.e. converts from ‘visitor’ to ‘buyer’.

Cloaking: Hiding of page content or affiliate linking code.

Click-Through: When a user clicks on a link and arrives at a Web site.

Click-Through Ratio (CTR): Percentage of visitors who clickthrough to a merchant’s Web site.

Conversion Rate (CR): The percentage of visits to your site that convert to a sale. I.e. If 1 person in every hundred visitors to your site makes a purchase, then your conversion rate is 1:100 or 1 percent.



Creative: The promotional tools advertisers use to draw in users. Examples are text links, towers, buttons, badges, email copy, pop-ups, etc.

Banner Ad: Advertising in the form of a graphic image.

Contextual Link: Placement of affiliate links within related text.

Email Link: An affiliate link to a merchant site contained in an email newsletter or signature file.

Impression: An advertising metric that indicates how many times an advertising link is displayed.

Search Engine Optimization (SEO): The process of choosing keywords and keyword phrases relevant to your site or page on your site, and placing those keywords within pages so that the site ranks well when those keywords are searched upon.

Text Link: A link not accompanied by a graphical image.

Tracking URL: A tracking URL is a web site URL with your special affiliate code attached to it, i.e. http://www.some-website.com/?ID. Visitors arriving at the site are tracked back to you through your special code, or ID.

Unique User: A unique visitor to your Web site. Probably the best indicator of site traffic.

ROI - Return on Investment (How to calculate ROI: ROI = (Revenue - Cost) / Cost. )

PPC - Pay Per Click

EPC - Earning Per Click

Charge Back - An invalid sale that results in the affiliate's commission being forfeited.

ROAS - stands for 'Return on Advertising Spending'. This is the amount of revenue generated for every dollar spent on advertising. For instance, a ROAS of $1 means you're generating $1 in sales for every $1 in advertising spend, and a ROAS of $5 means you generate $5 in sales for every $1 in spending.

Residual Earnings - Programs that pay affiliates not just for the first sale a shopper form their sites makes, but all additional sales made at the merchant's site over the life of the customer.

Recurring Commissions - The process of rewarding an affiliate on a recurring basis whenever the merchant charges a customer a recurring fee. For example, a web host that charges customers on a monthly basis might reward the affiliate a percentage of each month's payment from the customer.

Click Fraud - Click fraud, also called pay-per-click fraud, is the practice of artificially generating traffic to advertisers' sites either manually or through the use of automated clicking programs (called hitbots). The advertiser pays for this traffic, which has no potential for generating revenue, however, the scammer receives a percentage of the pay-per-click fees paid by the advertiser.

Niche - Specific and targeted section of a particular market.
 
Anytime :)
Feel free to add terms you don't know the meaning of - the AMs and the old dogs here will add the descriptions, then I'll add them to the first post to make it really thorough.
 
ROI - Return on Investment

PPC - Pay Per Click

EPC - Earning Per Click


When I was new I didn't know what these even meant. Update the thread with these too. :)
 
CPA - Cost per action - Advertising model that allows advertisers/merchants to pay affiliates per action, e.g. purchase, opt in, form submission.

CPC - Cost per click

CPM - Cost per thousand impressions

Merchant (Advertiser) - Business owner who works with affiliates to generate business.

Above the fold - The visible portion of a page when it is first loaded.

Niche - Specific and targeted section of a particular market.
 
Also for ROI it would be great to add how to work out ROI:

Return on investment (%) - Method of calculating the efficiency of a campaign. ROI = (Revenue - Cost) / Cost
 
Maybe the following terms also fit into the list:

EMD - Exact Match Domain

SOI - Single Opt In

DOI - Double opt in

pva - phone verified account

angle(s) - different perspectives
 
MI
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